Hi
Joe here from Budibase.
I am currently revising our pitch deck and I'm attempting to calculate TAM (Total Addressable Market). Would the IH community have any tips or recommend certain resources?
Cheers in advance,
Joe Budibase
TAM is the ultimate ideal, "I have no competition and no barriers". So if the customer is a business, there's a bunch of ways to quantify those, and multiply with your revenue per customer. I've always been able to find reasonable TAM research via Google. If the customer is an app user, that's a quantifiable number as well. TAM is usually to get attention and calculate the rough potential for a business.
Thanks Davey. Google is my friend in this scenario. I was undecided between bottom up vs top down. Top down is a lot easier as there are some great studies out there. But I've read it is not as effective.
Cheers for you advice.
Hey Joe,
First, I'd use the word "Estimate" instead of "Calculate" as it's probably more relevant.
You can search for market researches online and those could give you an estimate.
For example if you have a no-code platform, you could first check the TAM for websites and apps in general, then look for the same figure for no-code apps, and try to have as many examples as possible so you could try to do some type of cross-check.
If you want to get those figures on your own, it's also possible, but would require some more research of course
I couldn't agree more Satch. My head finds it hard to calculate something based on loose metrics. The term estimate is a lot better.
I think the top down approach is easier in my scenario and it will have to suffice.
Cheers for your advice.